FriendTech Generates Nearly $20 Million in Revenue Since Launch
The development team behind FriendTech, a social protocol platform, has generated close to $20 million in revenue since its launch a few months ago. FriendTech allows users to link their Twitter accounts and facilitates the buying and selling of influencer profile tokens called “keys” using ETH on the Base Layer 2 network, backed by Coinbase.
Largest Revenue-Generating App on Base
FriendTech currently holds the top spot as the largest revenue-generating app on Base and ranks second in the entire crypto industry, according to data from DeFiLlama. The project is projected to generate an annualized revenue of $180 million at its current rate.
Fees and Revenue Distribution
The platform has collected almost $40 million in fees from users, which are obtained by taxing around 10% of the trading volume of social tokens. Half of these fees go to the project’s team as revenue, while the other half is distributed among users whose keys are traded.
Decrease in Unique Users
Although FriendTech remains the top project in the SocialFi niche in terms of daily volume, the number of unique users has significantly dropped since late September, as reported by The Block.
Founder’s Earnings
The founder of FriendTech, known as ‘0xRacer,’ has separately earned over $440,000 from the platform based on on-chain data aggregated on Dune.
Security Improvements
Despite its revenue success, FriendTech has faced challenges regarding user security. To address this, the platform introduced an option for users to switch from phone numbers to emails after experiencing SIM swap attacks. These attacks resulted in a reported loss of 42 ETH ($70,000) on October 3, and attackers gained approximately $385,000 from four FriendTech users recently.
Hot Take: FriendTech’s Rapid Revenue Growth and Security Concerns
FriendTech has experienced remarkable revenue growth since its launch, making it the largest revenue-generating app on Base and the second-largest in the crypto industry overall. However, the platform has faced security issues with SIM swap attacks compromising user accounts and resulting in significant losses. While the project has made efforts to improve security by offering email options instead of phone numbers, these incidents highlight the importance of robust security measures in the crypto space. FriendTech must continue prioritizing user protection to maintain its success and reputation within the industry.
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